Only 11% of Asia asset owners’ portfolios have been invested in environmental, social and governance assets or ESG-related strategies, says a new report.
Generally, however, Asian pension funds’ allocations to alternative assets demonstrated only a modest increase of 0.6% from 2019 to 2020.
The world’s third-largest pension fund announced a shake-up in how it manages overseas fixed income and private holdings to cut expenses and improve execution.
Korea Investment Corporation (KIC) and the National Pension Service (NPS) plan to enhance overseas voting rights and mandatory ESG filings for overseas companies.
The National Pension Service believes better governance and a more consistent strategy will be the results of keeping its chief investment officer in place - and industry experts agree.
They have teamed up with each other and with overseas investors to boost investment capacity in real estate and infrastructure investments in Europe and North America.